Monday, March 31, 2008

Buy, Sell, Invest, Refinance...What do I do?

Phenomenal question. Needless to say that the answer is always different from one person to the other. Selling a home is challenging right now - there is lots of competition in the marketplace throughout the State of Iowa, and even the country as a whole. If someone else has more equity and is willing to take less on an offer, your home now appears to be worth less in the eyes of an appraiser and other potential buyers. It isn't fair...or is it?

Interest rates have seen consistent reductions over the past year. There aren't that many people taking advantage of it for one reason or another. It seems strange that back in the early 2000's everyone was rushing to cash in on the latest craze. Everyone was purchasing a new home or investment property...and especially refinancing. There may be a fear that what happened then is the root cause for why the subprime mortgage bubble failed - well I've got news for you! Yes, some lenders made horrible choices and approved loans for anyone that could count to ten. These lenders are gone for a reason. Secondly, borrowers that could count to ten also made some poor choices - if you have not held a stable job your entire life, it isn't a good idea to buy a $300,000 home, no matter what "deal" your bank can get you! The creative loan programs have vanished...and rates are almost as low as they were when everyone had the refinance rage before. It is safer, smarter in some instances, to check out your options and make a plan that will put you ahead in this game called life.